Posts Tagged ‘PFTSC’

Basrah – Rumaila’s facelift is continuing despite a few hiccups that pushed production down to below the initial production rate (IPR) of 1.065 million barrels per day. That’s the rate at which Rumaila was producing under SOC last year until BP with CNPC signed a service contract to stop the decline and develop the field further to bring it up to 2.85 million b/d within 6 years. However, SOC officials are not worried. Over the past two months, things were put back on track again. The decline has stopped and …

In retrospect, and despite what was considered at the time a ridiculously low fee, producing oil fields awarded to international oil companies in the first bid round turned out to be the most lucrative in terms of the service fee they will be paid. That’s excluding the three fields that will be producing less than 200,000 b/d (see table below). Even with the protracted negotiations over amendments to the final producing field technical service contract (PFTSC) with both Eni and Exxon Mobil, the final contractual terms are admittedly balanced and fair …